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There have been systems developed around those time periods. They are
called the SmartMoney DumbMoney Index systems. The AM move is attributed to
the public and the PM to the pros whoever they are. The 10AM move, usually
a fade, is the end of the first 30 minute bracket used by the market
profilers. Where the open is with respect to the previous day's value area
and the first two 30 minute brackets provide clues to the rest of the
morning and sometimes the day. John Clayburg has a free Directional Day
indicator at his website http://www.clayburg.com that plots a horizontal
line at the average of the high and low of the first five minutes as well as
plotting a vertical line at the 60 minute mark after the open. Attached is
a chart of this along with two additonal horizontal lines that mark the
first hour high and low. He writes about the use of this indicator in his
recently published book "Four Steps to Trading Success". The amount of
trading above and below the horizontal line up to the first hour determines
the directional bias, in theory at least for the remainder of the day. I
found it to be a good read and picked up a few useful ideas in the book.
Getting back to the 2PM trend, that is quite well known also as the "bond"
move. By then the day's trend in interest rates is pretty well established
and the change in rates with respect to the previous day(s) is known and the
neural nets start doing their readjustments on intemarket analysis which
makes its way into stock movement as the bond trading nears the end of its
morning session. The infusion of new mutual fund money begins to have an
effect late in the day also.....strong days often get another boost about
then.
bobr
----- Original Message -----
From: "John Cappello" <jvc689@xxxxxxx>
To: <Realtraders@xxxxxxxxxxxxxxx>
Sent: Tuesday, April 02, 2002 2:22 AM
Subject: [RT] Time and Motion Trading
> Certain authors have written about the subject. The one I have been
> casually following is an observation that the S&P market starts to
> establish two major moves , one at 10 AM and another at 2 PM.
>
> I have just been observing the 10 AM move by logging in the cash
> value at 10 AM and again at 10:15 AM. In 4 of the five days followed
> the direction up or down movement was sustained to at least until
> 11:15 for what appeared to be a profit.
>
> Has anyone tried to build a system around anything close to this
> concept.?
>
> Ben made a beautiful post on calls with charts and all...no comments
> from the peanut gallery likely because they did not understand it.
>
> P.S Quick response to recent blue sky and green grass people:
>
> The preponderance of sky particles are in the blue wave length and
> not violet. I stand by my explanation previously posted . It is not
> complicated.
>
> The plague was the Bubonic plague spread by rats somewhat like vermin
> multiplying on this board as anticipated.
>
> Yes I know I had a typo of mnemonic.
>
> Now if only you could keep a trading post going as long as nonsense
> this forum would be great again.
>
> Sincerely,
>
> John
>
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxxxxxx
>
>
>
> Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
>
>
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